Can SatCo become Europe’s answer to Starlink? Why digital sovereignty matters in space telecom

Vodafone Group and AST SpaceMobile Inc. are advancing Europe’s most ambitious commercial space telecom initiative through their Luxembourg-headquartered joint venture, SatCo. With Germany selected as the operational control center, this new satellite network is designed to deliver mobile broadband directly to standard smartphones across 21 European Union member states and beyond. Unlike conventional satellite services, SatCo is being positioned as a sovereign alternative to United States-based players such as Starlink, ensuring end-to-end EU control over connectivity, encryption, and regulatory compliance.

As the European Union pushes forward with initiatives to reclaim strategic digital infrastructure, SatCo offers a concrete manifestation of those ambitions in space-based telecommunications. Germany’s designation as the Satellite Operations Centre reinforces the project’s sovereign alignment, while also setting SatCo apart as a distinctly European response to the global space telecom race.

How does SatCo’s design differ from Starlink and other global satellite networks?

Unlike Starlink, which relies on proprietary terminals to deliver broadband from space, SatCo’s model, powered by AST SpaceMobile’s BlueBird satellite technology, is engineered to connect directly to standard 4G and 5G smartphones. This eliminates the need for customer hardware and allows mobile network operators to integrate space-based broadband directly into their existing service portfolios.

SatCo’s second-generation Block 2 BlueBird satellites are designed to feature massive communications arrays measuring up to 2,400 square feet, offering peak data transmission speeds of up to 120 Mbps. Although slower than Starlink’s high-throughput terminal-based system, SatCo’s approach is optimized for mobility, emergency communications, and coverage in difficult terrain. AST SpaceMobile is also vertically integrated, with approximately 95 percent of satellite manufacturing performed in-house from its Texas-based facilities.

In contrast, OneWeb focuses on fixed broadband and enterprise connectivity, while Amazon’s Project Kuiper remains in the pre-deployment stage. Apple’s satellite-enabled iPhones using Globalstar infrastructure only offer limited emergency messaging capabilities, not full data broadband. SatCo’s full-stack direct-to-device architecture places it in a distinct category, especially for national telecom operators seeking compliance with regional data laws.

Why is digital sovereignty central to SatCo’s positioning in the EU?

Digital sovereignty has moved from being a policy talking point to a strategic imperative for the European Union. Regulatory frameworks such as the Digital Markets Act, Digital Services Act, and evolving cybersecurity directives all point toward reducing dependence on foreign-owned infrastructure, particularly in sensitive sectors like communications and cloud computing.

SatCo directly addresses these concerns by giving European operators and governments localized control over key satellite network functions. The forthcoming Satellite Operations Centre in Germany will house a “command switch” that allows real-time updates to all telemetry, tracking, and control encryption keys across S-Band and Q/V-Band channels. This feature will enable secure beam activation and direction changes to be executed from within EU borders, with full compliance to European security policies.

From a regulatory standpoint, AST SpaceMobile has filed for satellite registration with the International Telecommunication Union through Germany, ensuring that SatCo’s orbital assets and spectrum rights are held within a European legal framework. This regulatory alignment also facilitates smoother integration with EU-specific requirements such as the General Data Protection Regulation and national telecom laws.

What telecom market needs in Europe does SatCo aim to address?

Despite having one of the most mature telecom infrastructures globally, the European Union continues to face significant rural connectivity gaps. In many regions, extending terrestrial networks is either economically unviable or logistically complex. SatCo’s model fills this gap by offering on-demand mobile broadband over satellite, seamlessly integrated into terrestrial 4G and 5G networks.

In addition to boosting coverage in underserved areas, SatCo is built with public protection and disaster relief use cases in mind. Its ability to deliver broadband speeds to emergency responders’ smartphones, even during terrestrial outages, aligns with the goals of the EU Critical Communication System framework. This positions SatCo as both a commercial solution and a component of national infrastructure resilience planning.

Furthermore, SatCo is a candidate for access to the European 2GHz Mobile Satellite Services spectrum. If granted, this would enable cross-border interoperability of services for both consumers and public sector agencies, turning SatCo into the EU’s de facto mobile broadband from space backbone.

What has been the investor response to SatCo’s expansion and AST SpaceMobile’s performance?

AST SpaceMobile Inc., listed on the NASDAQ under the ticker symbol ASTS, saw a notable 5.99 percent gain on November 7, 2025, closing at USD 69.19. The upward trend continued in after-hours trading, with the stock reaching USD 70.37. This reflects increased institutional interest following the announcement of Germany as the operational hub for SatCo. Analysts have pointed to the project’s sovereign infrastructure appeal and growing pipeline of mobile network operator partnerships as key drivers of this sentiment.

Vodafone Group, listed on the London Stock Exchange under the ticker symbol VOD, also saw a 1.38 percent gain, closing at GBX 88.36. Investors are viewing the company’s pivot toward strategic infrastructure projects as a potential catalyst for long-term value creation. Vodafone’s role in bringing a sovereign satellite solution to market is consistent with its infrastructure monetization strategy, which includes tower spin-offs and network-sharing deals.

Institutional flows into AST SpaceMobile have increased in recent months, aided by its partnerships with Vodafone, AT&T, and Rakuten. Analysts believe that execution milestones in 2025, including additional ITU filings, MSS spectrum allocation, and gateway station rollouts, will be key indicators of near-term upside potential.

Could SatCo become the blueprint for future sovereign satellite broadband initiatives?

SatCo is not Europe’s only move toward sovereign space-based infrastructure. Public-private programs like IRIS² and national initiatives in France, Germany, and Italy are all exploring regional satellite constellations for secure communications. However, SatCo may be the first project to combine commercial scalability, sovereign control, and direct-to-device capability at a pan-European level.

Around the world, sovereign satellite initiatives are gaining traction. China is deploying its Guowang constellation under state control. India is pursuing spectrum access for OneWeb via Bharti Global. The United Arab Emirates is studying regional constellations for connectivity and surveillance. Against this backdrop, SatCo could emerge as Europe’s most commercially credible and geopolitically compliant satellite telecom model.

By offering both infrastructure control and mass-market applicability, SatCo provides a framework that other regions may emulate. The ability to deliver emergency communications, commercial broadband, and regulatory compliance in one platform makes it a compelling candidate for public procurement, private sector adoption, and cross-border standard-setting.

What execution challenges could impact SatCo’s rollout in 2026 and beyond?

The road to commercial activation is not without challenges. SatCo must secure MSS spectrum rights across multiple EU jurisdictions, each with its own telecom regulators. Cross-border beam management, encryption harmonization, and spectrum interference mitigation will require coordination with national authorities.

On the commercial side, mobile network operators will need economic incentives to integrate SatCo into their service tiers. Cost structures, quality-of-service guarantees, and support for fallback modes will be crucial in gaining traction. Market education around the benefits of space-based fallback, especially for mission-critical users, will also play a role in adoption.

The competitive landscape is evolving quickly. Starlink continues to onboard enterprise and maritime clients across Europe. Apple’s Globalstar-backed services may expand beyond emergency messaging. And Lynk Global is signing early access deals in developing markets. To stand out, SatCo must not only offer sovereignty and coverage but also deliver seamless interoperability, affordable pricing, and reliability.

What does the Vodafone and AST SpaceMobile partnership mean for the future of EU telecom strategy?

Vodafone Group and AST SpaceMobile are attempting more than a technology rollout. They are positioning SatCo as the foundational layer for a future EU-wide space telecom grid. By combining commercial viability with institutional compliance, the project may define how Europe approaches the convergence of satellite and terrestrial telecom.

With geopolitical fragmentation driving infrastructure localization, SatCo’s model may also have export value. Middle-income countries looking for sovereign-aligned telecom alternatives could view the SatCo blueprint as a way to avoid overdependence on United States or Chinese systems. For the European Union, SatCo represents a first mover opportunity in a domain traditionally led by external powers.

The next 12 to 18 months will be critical. If SatCo achieves early operational milestones and institutional trust, it may not only become Europe’s answer to Starlink but also become the blueprint for the next generation of sovereign space telecom infrastructure.